High Tide: From Asking the Neighbors to Dodd-Frank Whistleblower Payouts

A roundup of corruption-related news from Dow Jones and other sources. You can also receive a newsletter version of Corruption Currents here.

Bribery:

Mike Lucas

How did Nigeria’s ruling party cover up a $600,000 bribery scandal? Nigerian police arrested the House lawmaker who an oil tycoon accused of taking a bribe as he investigated abuses in the country’s oil subsidies. More on the scandal here and here. (Sahara Reporters, Sahara Reporters, Bloomberg, Sahara Reporters)

The FCPA Blog has another look at enforcement data and excerpts its database with information on gift-giving in India. The FCPAProfessor shows how FCPA issues can reduce the value of a merger. Tom Fox examines the costs of an FCPA investigation. Mike Volkov discusses the role of compliance officers in the eyes of Congress. Ann Hollingshead asks the big question: What is corruption? Jim McGrath explains the dangers in incentivizing the use of a whistleblower hotline.

What are the big three lessons to learn from the Morgan Stanley FCPA case? (Corporate Counsel)

A client update by Vinson & Elkins argues that the U.S. doesn’t feel limited by the text of the FCPA in enforcing the law.

The new chief of the U.K. Serious Fraud Office laid out his vision for the future of the agency in his first public speech since taking the job. (Financial Times sub req)

An Algerian court convicted executives of two Chinese telecoms firms for alleged bribery from 2003 to 2006. Huawei said it takes the matter very seriously and is reviewing the court’s decision. ZTE declined to comment. The U.S. has its own concerns with the firms. (Shenzhen Post, Wall Street Journal)

Money Laundering:

It’s the easiest thing in the book: Ask the neighbors! People who live near the Lexington, Olka. ranch where a reputed Mexican drug cartel leader lived said it was obvious something was amiss. He allegedly laundered money through the horse-racing industry. All of the people arrested in the case will eventually face a judge in Texas, but when they arrive in Austin to do so is uncertain. More here, here and here. (AP, KSAT, Christian Science Monitor, The Independent, AP)

The Yarrington Affair, as political observers are calling it, has the feel of a crime thriller. In the case, a Mexican governor, Tomas Yarrington, is accused of taking money from drug traffickers and laundering it through the U.S. Yarrington denies wrongdoing and calls it a political smear. (Washington Post)

Much of the illicit money leaving Mexico finds its way to the U.S., according to an op-ed by Heather Lowe, legal counsel and government affairs director of Global Financial Integrity. (CNN)

A former Jordanian intelligence chief pleaded not guilty to charges of money laundering, embezzling public funds and abuse of office. More here. (AP, Middle East Online)

Sanctions:

Those helicopters U.S. Secretary of State Hillary Clinton accused Russia of supplying Syria with may not actually be new. Moscow and Washington continue to trade barbs over who is arming Syria and how. France said the United Nations should have the ability to use force to help restore peace. The U.S. defended an arms deal for helicopters for Afghanistan it signed with the Russian firm it accused of shipping choppers to Syria. Australia encouraged further sanctions, while China objected to “one-sided” measures. . More here, here and here. (NY Times, ABC News, Al Jazeera, Wall Street Journal, AFP, Dow Jones Newswires, AFP, Time, BBC, Reuters)

India’s seeking more oil and natural gas from Saudi Arabia, Algeria and Qatar as it cuts imports of Iranian crude in line with U.S. sanctions. Iran hardened its stance on enriching uranium. More here and here. (Dow Jones Newswires, Wall Street Journal, Al Monitor, Al Monitor)

An update on the suspension of U.S. sanctions on Myanmar is here. The International Labor Organization voted to lift its sanctions on Myanmar. (Trade Law News, Financial Times sub req)

A comparison between the ING Bank and JPMorgan Chase settlements with the U.S. over sanctions violations is revealing. More on the ING settlement is here. (Emptywheel, CNN Money)

Whistleblowers:

The SEC is getting ready to make its first payouts to informants under the Dodd-Frank whistleblower bounty program. (Investopedia)

General Anti-Corruption:

The U.S. Justice Department dropped a plan to retry John Edwards after a mistrial was declared in the case. Read the government’s filing here. (Wall Street Journal, WSJ Law Blog)

Corruption and organized crime in Montenegro are still barriers to its entrance into the EU. (OCCRP)

A Bollywood star was questioned by the International Cricket Council over spot-fixing. (NDTV)

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Corruption Currents, The Wall Street Journal’s corruption blog, digs into the ever-present and ever-changing world of corporate corruption. It is a source of news, analysis and commentary for those who earn a living by finding corruption or by avoiding it. Corruption Currents is written by Christopher. M. Matthews and Sam Rubenfeld and edited by Nick Elliott.

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